Dossier on the mortgage market

The strong vacancy growth in residential investment properties and the sustained high level of construction have increased Swiss real estate market risks.

Persistently low interest rates also mean that investors still face a dearth of supposedly low-risk return opportunities, and investing in real estate therefore remains attractive.

Momentum in the Swiss mortgage market eased slightly in 2016, especially where owner-occupied residential properties were concerned.

In the low interest rate environment, monitoring and managing interest rate risks remains extremely important.

Price growth slowed slightly following the increase in the countercyclical buffer and the somewhat stricter rules on amortisation and central parameters of self-regulation. However, imbalances and the factors driving them persist.

Despite self-regulatory measures and the countercyclical capital buffer, real estate prices and mortgage volumes once again rose in 2013 – somewhat more slowly than before, but still faster than gross domestic product.